Suppose XYZ Corp.is producing and selling disposable wooden chopsticks in a perfectly competitive market.The market price is $0.05 per unit and the firm is currently producing 600 000 units per month.The firm's total revenue is ________ per month.The firm's marginal revenue is ________.
A)$30 000; $0.05
B)$12 million; $0.05
C)$1.2 million; $0.01
D)$3000; $0.50
E)$3000; $0.05

Question

Quizplus · Accepted Answer

The firm's total revenue is calculated by multiplying the market price ($0.05) by the quantity produced (600,000 units), which equals $30,000. In a perfectly competitive market, the marginal revenue is equal to the market price, which is $0.05.